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Draft Red Herring Prospectus

About Draft Red Herring Prospectus

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What is DRHP?

When a company plans to raise money (for example: float an IPO) from the public by selling its shares to investors, it files and submits a Draft Red Herring Prospectus (DRHP), also known as 'offer document' or 'preliminary registration document', with the market regulator Sebi (Securities and Exchange Board of India).
 
DRHP, a legal preliminary prospectus, serves as a crucial communication link between the company and its investors and stakeholders.
 
Key features
 
Through DRHP, the issuer firm allows potential investors to make an informed decision and analyse its financials, issuance objectives, business operations, promoter holding, market valuation, and other important information.
 
The DRHP document explains why the firm seeks to raise funds from the public, how the money will be utilised (use of proceeds) and the risks involved. However, it does not include the amount of issue and details of the price or number of shares being offered.
 
The DRHP of a company is available on the official websites of the issuing company, Sebi, merchant bankers and stock exchanges.
 
Difference between DRPH and RHP
 
Firm planning to go public delegates a merchant banker to prepare the DRHP. The Sebi analyses the DRHP and recommends changes, if required, and then gives a go-ahead when the suggested amendments are made according to its guidelines.
 
After the approval from Sebi, Registrar of Companies (ROC), and the stock exchanges -- Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), the DRHP converts into a Red Herring Prospectus (RHP) which is also known as 'final prospectus'.
 
An RHP document comprises additional details of the issue, the number of shares offered and the face value.
 

Latest Updates on Draft Red Herring Prospectus

Agarwal projects 19% jump in FY23 revenue to Rs 5,700 crore

Updated On: 27 Mar 2023 | 7:33 PM IST

Engineering services company files DRHP; seeks to raise Rs 4,000 cr

Updated On: 10 Mar 2023 | 11:01 PM IST

The public issue comprises fresh issue of equity shares worth Rs 300 crore and an offer for sale (OFS) of 48,69,712 equity shares by one of the promoters and existing shareholders

Updated On: 11 Feb 2023 | 2:49 PM IST

Currently, promoter and promoter group hold 66.70 per cent stake in the company and the rest is with public shareholders

Updated On: 23 Jan 2023 | 10:54 PM IST

The offering could be Tata group's first since listing of TCS in 2004

Updated On: 12 Dec 2022 | 9:29 PM IST

Offer document open to scrutiny only by regulator, exchanges; the Walt Disney Company-led firm eyeing a Rs 3,000-crore IPO

Updated On: 01 Dec 2022 | 10:50 PM IST

The proposed IPO comprises a fresh issue of equity shares and an offer for sale (OFS) of up to 9,328,358 equity shares, according to the draft red herring prospectus (DRHP)

Updated On: 19 Nov 2022 | 1:54 PM IST

The firm's DRHP expired in August this year and it will need to refile its papers with Sebi to reinitiate the IPO process

Updated On: 24 Oct 2022 | 6:15 AM IST

Many are beefing up their investment banking teams and pitching for deals which otherwise would have gone to larger banks

Updated On: 12 Sep 2022 | 11:34 PM IST

The draft offer documents for the IPO were withdrawn on August 16 and the reasons for the withdrawal have not been disclosed, an update with the markets regulator showed on Tuesday.

Updated On: 23 Aug 2022 | 7:43 PM IST

Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets its dairy products under the Amul brand, on Tuesday increased prices of its Gold, Taaza and Shakti milk brands by Rs 2 per litre.

Updated On: 16 Aug 2022 | 5:32 PM IST

The company, which filed its preliminary IPO papers with the capital markets regulator in April, obtained its "observation" letter on August 2, an update with the Sebi showed

Updated On: 08 Aug 2022 | 6:22 PM IST

The IPO comprises fresh issuance of 85.20 lakh equity shares and an offer-for-sale (OFS) of up to 25.5 lakh equity shares by promoters ---- Mayank Shah and Sweta Shah, according to the DRHP.

Updated On: 28 Jun 2022 | 5:41 PM IST

This high number of DRHP filing - or intent shown by companies to go public - paints a bullish picture

Updated On: 28 Jun 2022 | 10:11 AM IST

The IPO comprises fresh issuance of equity shares worth Rs 370 crore and an offer-for-sale of equity stocks aggregating to Rs 370 crore by promoter Inox Wind

Updated On: 20 Jun 2022 | 8:58 PM IST

Going by the draft papers, the company may consider a private placement of equity shares aggregating up to Rs 75 crore. If such pre-IPO placement is undertaken, the fresh issue size will be reduced.

Updated On: 20 Jun 2022 | 7:40 PM IST

The initial share-sale of Bharat FIH comprises fresh issue of shares worth Rs 2,502 crore and an offer for sale of up to Rs 2,502 crore by promoter group and Foxconn unit Wonderful Stars

Updated On: 13 Jun 2022 | 6:34 PM IST

Delhivery, Paytm, Zomato, Policybazaar saw a sharp spike in the packages of 'key management personnel' in the year they filed their RHP

Updated On: 07 Jun 2022 | 1:53 PM IST

The Bangalore-based HR services platform plans to raise Rs 50 crore in fresh capital through the IPO and the remaining Rs 750 crore will be an offer for sale by existing shareholders

Updated On: 12 May 2022 | 11:45 PM IST

The government believes LIC's valuation would surge, following the insurer's lisiting

Updated On: 25 Apr 2022 | 6:08 AM IST